BMW X5 Way Over Mileage…Options?

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I have a 2020 BMW X5 that I leased in March 2020 on a 36 mth lease with 10k miles per year. I got the vehicle at the very beginning of the pandemic when I was commuting from LI to the city by train and subway. But since October of 2020 I have been driving in 4 days per week and I expect to continue driving through the remainder of the lease duration. Unfortunately I’m now WAY over my mileage allowance and want to understand how best to play for this.

The residual value of my vehicle per my lease is $38,814.15. Does it make sense for me to buy more mileage now at $0.23 per mile or possibly buy the car outright at the end of the lease and sell it. Do I have any other options? Being that this is my first lease, I’m not sure the best path forward and I’m trying to figure out a plan now before it’s too late. Would appreciate any advice.

Check how much you can get from carvana, vroom, etc even if you can break even it’s worth it…

You’re 18 months in, so RV doesn’t apply. You need to check the pay-off and

Carmax, Carvana, Vroom, Shift, GMTV, etc.

How many miles a year are you now projecting to drive? Is leasing even feasible?


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Do they even buy now?

Yes of course

Does who what now? BMW is allowing third-party buyouts.

And they aren’t on “the sign”

(For the Carmax sign, I realize it’s a post about LFS)

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They do? Wow

Yea I was only stating the RV to provide all the info. I’m not sure if it makes sense to continue making my lease payments and then just buy it at the end of the lease term for that amount. My payment right now is $699/mth And if I did that, would I potentially have any equity in the car? Figure I’ll be at ~40k miles at that point.

Compare your current payoff to what you can currently sell it for

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Thanks…why would it make sense to pay it off now instead of just waiting until the end of the lease? Either way, the BMW website won’t provide me my payoff amount so I submitted a request. I’ll see what they say.

If that is the case, we are missing a lot of details. There isn’t enough data here (yet) to make any decisions. You have several things going on here, you need to separate them.

Tells us how upside-down you may/may not be in the X5 now.

You have to sort out whether you would replace this x5 with a lease or not based on your mileage. You told us mileage rate and what’s included in the lease, not how many miles you currently have, or are driving annually, or are projected to go over.

If you are going to keep it

If you didn’t order it and took the March 2020 program without MSDs, your MF was 0.00142. If you are keeping this thing, can you find a car loan under 3.4%? If so, you could avoid some of that rent charge by buying it out asap.

I would consider a buyout (if possible) that gets the car CPO’ed, because there is no reality where I would have a loan on an X5 out of warranty.

If you decide to replace it, and you got a good deal on this X5, it’s unlikely you can reproduce that deal now. If that’s the route you want to go, I’d like up the new deal before unloading the X5.

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You would most likely not have equity in the car. Not sure on your trim and options, but a 3 year old, sub 40k miles, CPO X5 is listed for ~$43k. Assuming some money is tied up in the CPOing and reconditioning I think you would be lucky to be at break even.

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You’re driving a leased car from Long Island into the city? I really hope you do not live in Suffolk County. I know taking the LIRR and transferring sucks but that’s gonna be your best bet to keep your mileage down. You still have two years left are you sure you are going to only be at 40k miles?

@HersheySweet, didn’t you say it didn’t allow the third party buyout?

I don’t…I live in Nassau.

I just got the payoff amount from BMW Financial and it’s $52,966.87 after sales tax. The Carvana offer I received was $48,639. Are there other potentially better options here?

You need the 3rd party buy out number to compare against BMW’s offer, not your personal buy out which includes tax.

BMW still allows third party buyouts. However customer has to request dealer payoff quote now.

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Sorry if this question seems like it should be obvious but I’ve never done a 3rd party buyout before. How and to whom do I request a dealer payoff quote?